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Gouldsboro State Park is named for Gouldsboro, which was in turn named for Jay Gould (1836 - 1892). Gould, a native of New York, acquired an immense fortune during the Industrial Revolution, part of which included ownership of ten percent of all the rail tracks in the United States at the time of his death. One of his railroads passed by what is now the eastern boundary of the park. Gould was also the co-owner of a tannery in nearby Thornhurst. Raw hides were shipped from the western United States and Australia on the railroads owned by Gould to Gouldsboro. The hides were then sent to Thornhurst by way of wagons traversing a plank road.[3]

As of 2006, this rail line forms the dividing line between Gouldsboro State Park and Tobyhanna State Park in Monroe County, and is owned by the Lackawanna County Railroad Authority and operated by the Delaware-Lackawanna Railroad Co. Inc. Tourist excursions on this line are operated by Steamtown National Historic Site, and run from Steamtown's yard in Scranton to Tobyhanna.[4][5]

A dam and spillway were built on an existing lake in 1895 by the North Jersey & Pocono Mountain Ice Company. The new dam allowed more ice to be harvested from the lake in winter. In 1956 the Pennsylvania Fish and Boat Commission took over ownership of the dam. The park opened in 1958 and the dam was transferred to the DCNR in 2003.[2]

Inspections on the dam in 1979 revealed "the dam’s drain gate was inoperable and its spillway was deteriorating".[2] The lake was partially drained in 1985 and 1995 for repairs to the dam and spillway, and completely drained in January 2005. Repairs included removing debris, installing a culvert, fence and erosion control measures, and replacing the spillway. Repairs were completed and the lake was refilled in January 2008.[2]

Prospect Rock Trail is a 5.8-mile (9.3 km) "difficult" trail that is a loop that begins and ends in the day use area, passing over some very rugged terrain.[6]

Frank Gantz Trail is a 3.2-mile (5.1 km) "difficult" trail that connects Gouldsboro State Park with Tobyhanna State Park. The trail is very rocky and therefore very demanding, with an estimated round trip completion time of three hours.[6]